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These days thanks to the internet everyone can be an entrepreneur. It is simply a matter of finding what sort of business is suited to you and then making it happen. One of the most common ways is reselling products online at substantially lower than bricks and mortar retail prices. Here we will look at how businesses are able to achieve these low prices. The first thing is to look at what retail prices are made up of; obviously the cost price then the amount on top of that is called the margin. Eletrodomesticos baratos base this margin on what they need to cover their costs from running the business.

In the case of a retail store, the margin has to cover the rent, staff and utilities and so on. For an online business the costs are generally much less, for example site development and hosting, possibly no rent or staff fees at all. The margin for an online store can be much less than a standard offline store. You can see the advantages and now you want to start an online business. Where will you get your products from? There are many ways to source products at low prices some of the more popular ways we will discuss here:

Drop-shipping.

Where you list products on your website for sale and when you receive an order another company actually ships the product. You then receive a commission from that sale. This is one of the easiest businesses to establish because all of the product sourcing and shipping is done for you. Usually drop shipping companies will handle all the product information, pictures and content for you so even your online work is very minimal. Sounds simple right, what are the negatives? This could be the business for you but keep in mind you are selling products for someone else rather than building a long term business of your own. Secondly you don't have control over shipping so you can never one hundred percent be sure that products will arrive on time if at all, if there will be damage, quality is OK etc.

Wholesalers.

This is where the big boys play. There is almost no replacing the concept that buying more means getting cheaper prices. When you buy in bulk there are less costs associated with shipping the item, production costs and so on so you can then pass these savings on to the customer. The major questions you have to ask yourself with wholesalers are what to buy, where to buy? when to buy? How much to buy?

What to buy?

Hopefully by this stage you will have already decided what product area or areas you will focus on. Generally you should try to look for an area that you like or have some experience in that you will enjoy and will put more effort into making it work. You also want to look for products that are not saturated in the market. The best situation is finding a niche market where you don't have to compete with thousands of others.

Where to buy?

When buying wholesale you can try to get as direct to the manufacturer as possible as any middleman between you and the factory will add their margin. The problem is that the factory will only sell in very large quantities making it very difficult for the average business to place orders with them directly. It will also limit your ability to invest in a range of products instead of just buying a large quantity of a single product. The next tier are trading companies. These are the sharks of the wholesale world. The idea of trading companies is to buy in bulk then resell to several customers including their margin. Trading companies could be a good solution however it is very important to find a good company. Remember that trading companies do not always care about getting the best price from the manufacturer, or know very much about the product in the first place. They are often not skilled at finding the best factory, best price and ensuring quality control.